Agenda - Council - 06/12/2018 - Laserfiche WebLink

Home

NOTE 11— OTHER POST -EMPLOYMENT BENEFITS PLAN (CONTINUED) Annual required contribution $ 54,248 Interest on net OPEB obligation 23,175 Adjustment to annual required contribution (20,105) Annual OPN'.H cost (expense) 57,318 Contributions made (6,838) Increase in net OPEB obligation 50,480 Net OPEB obligation - beginning ofyear 515,011 Net OPEB obligation - end ofyear $ 565,491 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the past three years are as follows: Fiscal Year Annual Plan Sponsor Annual OPEB Net OPEB Ended OPEB Cost Contribution Cost Contributed Obligation December 31, 2015 $ 65,577 $ 10,560 16% $ 459,572 December 31, 2016 $ 55,439 $ 0% $ 515,011 December 31, 2017 $ 57,318 $ 6,838 12% $ 565,491 D. Funded Status and Funding Progress As of January 1, 2016, the most recent actuarial valuation date, the actuarial accrued liability for benefits and the unfunded actuarial accrued liability (UAAL) was $368,949 as the plan is unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $5,019,000, and the ratio of the UAAL to the covered payroll was 7%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and ARC's of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress immediately following the notes to basic financial statements presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. Actuarial Methods Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. 90